Crusoe, Tallgrass Secure Approval for Major 1.8GW AI Data Center and Power Hub in Wyoming

Crusoe, Tallgrass Secure Approval for Major 1.8GW AI Data Center and Power Hub in Wyoming

January 8, 2026

In a significant move for the AI infrastructure landscape, data center developer Crusoe and energy infrastructure firm Tallgrass have received final approval to construct a massive, integrated 1.8-gigawatt data center campus and natural gas power plant in Cheyenne, Wyoming. The project, named "Project Jade," underscores the intensifying demand for power-hungry computing and the strategic shift of data center development to regions with abundant energy resources.

The Laramie County Board of Commissioners granted the necessary permits for the project following a meeting on Monday, January 8. The development will be situated on land near Terry Ranch Road, south of Cheyenne. Crusoe will build the data center campus, while Tallgrass will construct the adjacent BFC Power and Cheyenne Power Hub, a $7 billion investment featuring natural gas turbines dedicated to powering the facility. The total investment for the combined data center and energy infrastructure is estimated to reach up to $50 billion.

Wyoming Governor Mark Gordon hailed the approval, positioning the state as an ideal host for future data center growth. He noted that Wyoming generates approximately twelve times more electricity than its residents consume, from a mix of coal, natural gas, and renewable sources, with much currently exported. “Data centers are a great use of our energy, a terrific opportunity to educate our workforce, and a fantastic addition to our tax base," Gordon stated. "We have lots of space, and a great climate for cooling, so I think Wyoming is one of the best places in the country to build new data centers like this.”

Despite official support, the project faces local opposition. At the county meeting, residents, including rancher Michelle Jessica, voiced concerns over the transformation of farmland into an industrial campus, potential light pollution, dust, and strain on water resources. In response, Crusoe emphasized that the facility will employ a closed-loop cooling system to minimize water consumption.

The campus is designed with substantial expansion in mind, with a potential future capacity of up to 10GW. However, the initial on-site power generation will be capped at 2.7GW, meaning any scaling beyond that would require drawing power from the external grid. The first data center buildings on the site are slated to be energized in 2027.

This project marks Crusoe's latest major foray into large-scale, energy-integrated data centers. The company is already operating a 1.2GW campus in Abilene, Texas, developed for Oracle and OpenAI, and has broken ground on another site exceeding 1GW. For Tallgrass, a Blackstone-backed pipeline operator, the venture represents a strategic expansion into power generation specifically for digital infrastructure, complementing its existing projects in hydrogen and carbon capture.

Source: datacenterdynamics